In the latest market close, Qualcomm (QCOM) hit $159.53, representing a +1.53% move from the prior day. This change outpaced the S&P 500’s 0.12% gain on the day. Elsewhere, the Dow Jones Industrial Average rose 0.52%, while the tech-heavy Nasdaq fell 0.23%.
Heading into today, shares of the company had lost 0.48% over the past month, outpacing the Computer Technology sector’s loss of 3.73% and the S&P 500’s loss of 3.45% in that time.
The investment community will be paying close attention to Qualcomm’s earnings performance in upcoming releases. The company plans to announce its results on February 5, 2025. The company’s EPS is expected to be $2.92, representing 6.18% growth compared to the same period last year. At the same time, our most recent consensus estimate is projecting revenue of $10.89 billion, representing an increase of 9.61% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.14 per share and revenue of $42.19 billion, which would represent changes of +9% and +8.29%, respectively, from the prior year.
It is also important for investors to be aware of recent revisions to analyst estimates for Qualcomm. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate adjustments are directly related to impending stock performance. To benefit from this, we have established the Zacks Rank, a proprietary model that considers these estimate changes and provides an investment rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). The firm has a remarkable, outside-audited track record of success, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained unchanged over the past month. Qualcomm currently carries a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Qualcomm’s current forward P/E ratio is 14.1. This valuation is cheap compared to the industry average forward P/E of 16.
It’s also worth noting that QCOM’s current PEG ratio is 2.15. The PEG ratio is similar to the commonly used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Wireless Equipment industry was 3.1.
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